Employer of Record in Tajikistan
Tajikistan has a large number of skilled, employable youth. However, its employment laws are intricate and require careful interpretation before you can set up your business there.
Skuad’s EOR solution helps businesses expand into Tajikistan. With Skuad’s Tajikistan EOR solutionsservices, you can access our automated global HR platform and coordinate the process of hiring and onboarding employees remotely. Our solutions streamline the process of hiring international candidates by conducting HR tasks such as payroll, taxation, probation, termination, work permits, and visa application. What’s more, we ensure full compliance with the local laws.
Tajikistan at a Glance
Population: 9.7 million inhabitants (2020)
Currency: Tajikistani somoni (TJS)
Capital city: Dushanbe
Languages spoken: Tajik, Russian
Gross Domestic Product (GDP): 8.12 billion USD (2019)
Employment in Tajikistan
It is crucial to adhere strictly to the Labor Code of the Republic of Tajikistan and these are applicable for all types of employees: citizens of Tajikistan and foreign nationals. The companies setting up a local entity in Tajikistan must be aware of all the employment and labor laws and regulations.
As per the Tajikistan labor laws, foreign nationals are entitled to work with organizations and companies based in Tajikistan under the same laws as citizens. However, some specific entitlements are reserved for only citizens of Tajikistan. All the wholly or partly owned foreign enterprises are operated under the labor legislation of the country.
Employment contracts are important in Tajikistan and they must be in the written format. The following details are required for employment contracts.
- Personal identification of both employee and employer
- Workplace information
- Job title of the employee
- Date of joining of the employee
- Terms of the employment contract
- Working hours
- Annual leaves, paid leaves, and rest times
- Salary information
- Employee and employer rights and responsibilities
- Terms of amendment or termination of the contract
- Compensatory payment and grounds
- Insurance information
- Date and serial number of employee contract
- Working conditions and safety measure for difficult and/or hazardous jobs
| Entitlements |
Explanations |
| Statutory working hours |
The statutory working hours are as follows.
- Forty hours per week in a regular working environment
- Thirty hours per week for employees with disabilities
|
| Overtime eligibility |
Overtime is allowed in exceptional cases under Article 80 of the Labor Code. However, the employer must ensure safety and favorable conditions for overtime, along with a positive social environment.
Overtime is prohibited for jobs with a 12-hour shift or hazardous/dangerous work conditions. Overtime cannot exceed four hours for two consecutive days and two hours for jobs involving harmful conditions. The overall overtime for the employee must not exceed 120 hours annually.
|
| Paid public holidays |
The paid public holidays in Tajikistan in 2021 are as follows.
- New Year’s Day (January 1)
- International Women’s Day (March 8)
- Navruz Celebration (March 21 to 24)
- Labor Day (May 1)
- Victory Day (May 9)
- Eid ul-Fitr (May 13)
- Day of National Unity (June 24)
- Eid ul Adha (July 20)
- Independence Day (September 9)
- Constitution Day (November 6)
- Constitution Day Observed (November 8)
|
| Holiday pay |
As per the labor laws, an employee is entitled to holiday pay in the following situations.
- A minimum of 24 paid annual leaves
- Paid leaves of 35 to 42 days for employees with disabilities
All the employees are granted rest on weekends depending on the number of days worked. For employees working for five-day shifts, two days of rest are granted, and for a six-day workweek, one day of rest is granted.
According to Article 154, employees who work during rest time and weekends are reimbursed by a complimentary off in the form of monetary compensation or another weekend.
For work done on non-business holidays, the rest day is transferred into another working day. If the weekend coincides with a non-business holiday, the first working day after the non-business holiday is given as a rest day.
|
| Medical leave |
There are no specific paid sick leaves. However, on medical grounds, employees can avail of 14 days of unpaid leave annually. |
| Maternity leave |
- Maternity leave is granted to women for 70 days before birth of the child and for 70 days after the delivery.
- However, in case of complications, it can be extended for up to 88 days for a single child and 110 days for twins or more. The leave can be extended until the child turns 18 months old.
- Unpaid child care leaves are granted to either of the parents (mother or father) until the child turns three years old.
- Additional unpaid leaves can be availed of by either of the parents for caring for two or more children up to the age of 14, and up to 18 years, in the case of disabled children.
|
| Annual leave accrual entitlement |
The total annual leave accrual is up to 24 days (also considered the paid annual leave). |
| Leave expiry |
In Tajikistan, the annual paid leaves must be used within 12 months of the leave entitlement (financial year), or else, they are carried forward to the next year. |
| Leave cash out |
The accrued annual leaves can be encashed while resigning from the job or during termination. |
| Accrued leave at termination |
The accrued annual leave is paid to the employee at termination. The employer adopts specific formulae for calculating the total amount of payment. This is stated in the employment contract. |
| Employee protection and anti-discrimination rights |
The employment in Tajikistan is bound by protection and anti-discrimination rights for the employee. The labor protection rights for the employee are defined by the Constitution of the Republic of Tajikistan. Article 344 of the Labor Code of Tajikistan declares the rights of the employee and provides safety.
Article 7 assures equal rights to labor and prohibition of discrimination based on ethnicity, religion, political views, education, language, race, gender, age, and family commitments.
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| Confidentiality of personal information |
Under Article 57, the employer is obliged to maintain the confidentiality of personal information. This Article,
- Prohibits disclosing employees’ personal information to a third party without consent (with a few exceptions)
- Provides that information should only be disclosed to an authorized person, with the exception of the information required for certain activities
- States that people with access to personal information must abide by Tajik legislation and maintain non-disclosure of personal information
|
To learn more about Tajikistan’s employment policies and ensure your expansion efforts fall within the legal requirements, book a demo with Skuad experts today.
Contractors vs. Full-time Employees
The full time employees are hired by an organization or company and have a fixed monthly income by working dedicated hours every day for assigned days in a week. The full time employees get compensation, company benefits, and are free to use the allotted resources of the company and in return have to pay income tax. However, the contractors are hired on a freelance basis and mostly hired for a particular project or during high requirements by clients. The projects are paid but the contractors are not part of the company’s permanent payroll, have to file their own tax, and can be terminated from work any time.
The employment contracts in Tajikistan are mostly in the written format, but at times, oral contracts are also permitted.
Skuad makes sure to provide a written contract in Tajikistan for the employee with inclusion of all the terms and conditions, compensation, benefits, leaves, and termination policies. Further, it is mandatory for an offer letter and contracts to include the salary, compensation amount, and other benefits. The employment agreement template is provided by Skuad as a part of our EOR service.
Hiring in Tajikistan
Skuad is a global EOR service with an automated HR platform. Our tailor-made solution for Tajikistan helps hiring companies recruit and employ both full-time and contractual employees. The recruitment and hiring in Tajikistan is governed by the Labor Code of 15 May 1997.
Agriculture is the largest economy sector contributing to nearly 22.6% of the GDP and employs nearly 45.% of the labour force. The expansion of the private sector under the aegis of USAID aims at growing the agriculture, logistics, textile, tourism, food processing, and information technology sectors of Tajikistan. The country has a rich water resource and hydropower plant capacity and hence with consistency in energy supply, it helps in promoting regional growth.
After the hiring process, all the onboarding formalities are taken care of and a contract is signed between the employee and employer. There are a number of job portals or websites or newspapers which help employers post job requirements in Tajikistan like UNDP Jobs Foundation and United Nations Tajikistan, and there are job openings posted on newspapers like Tajikistan News Gazette and ASIA-Plus Information Agency.
Despite the advantages of modern technology, the hiring process can be time-consuming and cumbersome. You can use Skuad’s Tajikistan EOR solution to hire employees in Tajikistan and onboard them as well. Skuad’s solution will enable you to focus on expanding your company, leaving HR-related tasks to our experts.
A preliminary probation contract can be signed during the pre-employment probation period. The probationary period in Tajikistan is based on mutual agreement between the employee and employer but cannot exceed more than three months. However, the standard probation period Tajikistan is not applicable under the following conditions.
- For persons under the age of 18
- For young specialists hired through referrals for a first-time post upon the completion of education
- For employees transferred to other locations or organizations
- For persons with disabilities with employee recommendations by the authorized public entity
- For persons employed by clearing a competitive exam
The termination of employment in Tajikistan under labor contract can be achieved,
- By mutual agreement of both the employee and the employer
- Upon the initiative of the employee or the employer
- After the expiration of the contract
- By the transfer of the employee to another job/organization
Notice Period
The employer or employee must provide notice in advance for initiating the termination.
- The notice period is either one or two months, based on the termination reason.
- In the case of a poor performance during the probation period, the notice period is seven days.
- Further, based on the reason for termination, employees are entitled to severance or compensation. The minimum severance pay for three months is the average salary of an employee.
To ensure your expansion endeavors adhere to the laws regarding probation and termination in Tajikistan, talk to Skuad experts and book a demo today.
EOR Solution in Tajikistan
An EOR company in Tajikistan makes the process of hiring and managing payroll for employees easy while guaranteeing adherence to the labor laws. Through Skuad’s EOR solution, the expansion process becomes smooth. We take care of the management of all employment-related responsibilities without the need for the establishment of a dedicated entity.
Foreign national employees in Tajikistan are governed by immigration and labor laws.
General Employer of Record EOR Service Terms
| Terms |
Details |
| Currency accepted |
USD, GBP, and TJS |
| Documents required |
For Tajikistan citizens, the following documents are required.
- Personal information and IDs
- Passport copy
- Bank details
- Job description
- Employment contract
For foreign nationals, the following documents are required.
- Personal information and IDs
- Work permit
- Job description
- Education qualification documents
- Employment contract
- Technical qualification documents
- Curriculum vitae (CV)
- Copy of passport
- Copy of ID
- Bank details
- Police verification
- Medical fitness certificate
- Photographs
|
Outsourcing Employment through an Employer of Record
Whether your business is looking for employees to meet strategic expansion requirements or you need able professionals for specific undertakings, our Tajikistan EOR solutions can help you find the right way to scale up your business. Contact us today to expedite your expansion endeavors.
Types of Visas in Tajikistan
Several different types of visas exist in the Tajikistani system. Tajikistan has strict laws and regulations for international companies for conducting business in the country, most of which depend on visa and work permit rules. Skuad’s EOR service for Tajikistan has comprehensive solutions for the visa application, types of work visas, and sponsorship.
| Visa Category |
Explanation |
| Type M visa |
This is a work visa that allows foreign employees to work for locally registered companies in Tajikistan. It is a sponsored visa for a Tajikistan employee from a foreign nation. It takes two weeks to process. Initially, type M visas are valid for up to three months, and after that, the foreign employee can apply for a visa extension based on the work permit. |
| Criteria or documents for M-type visas |
The documents and requirements for type M visas are as follows.
- The applicant must have a valid job offer in Tajikistan.
- Purpose of the visit must fall under the Permanent Labor Activity approval list.
- A signed employment contract with a company based in Tajikistan is needed.
- A Letter of Invitation by the employer should be produced.
- An address in Tajikistan is required.
- The full name, contact, and address of the company in Tajikistan must be provided.
- The employer applying must have a registered company in Tajikistan.
|
| Type C visa |
- This visa is granted to the heads of foreign companies or their representatives interested in investing in Tajikistan.
- The applicant must be an investor or the executive of a company with the intention of investing.
- The length of the visa varies from a month up to five years
- The visa application requires an address in Tajikistan, the name of the company, and its phone number and address.
|
| Business visa |
This type of Tajikistan work visa is for business purposes and for exploring the market or attending a meeting or conference in Tajikistan. The duration of the visa can start from three days and extend up to three years. |
Talk to us and get more information and guidance related to types of visas and work visa requirements in Tajikistan. Skuad can handle all your visa requirements and ensure the expansion process is not delayed.
Work Permits
The work permits are crucial for foreign employees to work in Tajikistan. Skuad has many local partners to help sponsor Tajikistan work permits for foreigners. With our exceptionally skilled and dedicated experts, Skuad helps with EOR services in Tajikistan and takes care of all the employment-related aspects.
It should be noted that Tajikistan work permits without job offers are not allowed for foreign nationals, although business visas can be applied for.
| Key Details |
Explanation |
| Can Skuad sponsor work permits in Tajikistan? |
Yes, Skuad can sponsor work permits in Tajikistan. |
| Processing time |
The processing time for work permits is two weeks. |
| Work permit process |
The work permit process is as follows.
- Step 1: The local partner for Skuad in Tajikistan applies for a C-type visa.
- Step 2: The application for a work permit is submitted either through the embassy or the Ministry of Foreign Affair online with supporting documents.
- Step 3: An email is sent by the Tajik embassy or consulate for the submission of fingerprints, photographs, and the application documents.
- Step 4: On application approval, the passport is collected from the embassy along with the work visa. This step requires the payment of the visa fees.
- Step 5: The employee can travel to Tajikistan upon receiving a work visa and obtaining a work permit.
|
| Passport submission |
The original passport must be submitted during an appointment with the Tajiki embassy or the Ministry of Foreign Service. |
| Work permit validity |
It is valid for up to three years and can be further extended. |
| Work permit process for different countries |
For the majority of the countries, the process of obtaining a work permit in Tajikistan is the same. |
| Change of sponsor within Tajikistan |
The employee requires a fresh application for a change of sponsor. |
| Where is the application processed? |
The work permit is issued by the Migratory Service of the Ministry of Internal Affairs in Tajikistan. It is processed in the Tajiki consulate in the employee’s home country. |
| Work permit requirements |
To obtain a work permit in Tajikistan, the applicant must have an offer letter and employment contract along with an invitation from the employer. |
| When can an employee travel to Tajikistan? |
An employee can travel to Tajikistan when the work visa is approved. However, once in Tajikistan, the work permit must be issued by the Migratory Service of the Ministry of Internal Affairs in Tajikistan. |
| What is the cost of a business visa? |
$100 |
| Duration of business visa processing |
It takes five to 10 days to process a business visa. |
| Can a business visa be switched to a work permit? |
No, it cannot. |
| Can spouses work on dependent visas? |
Spouses cannot work on a dependent visa. Thus, for employment and work, a separate work visa must be applied for by the spouse. |
| Termination of work permit |
The Main Consular Department of the Ministry pf Foreign Affairs can revoke the visa of a foreign national by affixing “revoked” stamp on the passport and issuing exit visa. The MFA MCD can revoke the visa in case it does not match with the purpose of travel. |
To learn more about work permits in Tajikistan talk to Skuad experts.
Payroll & Taxes in Tajikistan
Things You Must Know to Set Up Payroll in Tajikistan
The Tax Code of the Republic of Tajikistan is responsible for handling the tax and payroll related aspects of jobs and business. Article 4 sums up the tax relations provided by the code which ensures payment of the taxes, organization structure of tax authorities, and organization form, tax control methods, and any form of violations.
Foreign employees must adhere to the rules about income tax, business tax, compensation, and insurance. The Tajikistan payroll tax rates are managed through Skuad’s EOR services. Outsourcing the payroll means effective management of the company and handling all the payroll and tax-related aspects for the employees. This reduces the overall burden for the employer.
| Payroll Type |
Explanation |
| In-House Payroll |
The in-house payroll is when there is an internal permanent staff handling the payroll department of the company. It is time consuming, expensive, and requires permanent monthly payout which is not cost-effective. It even risks the delay and might even lead to calculation errors. |
| Outsourcing |
Outsourcing payroll enables a business or company to partner with a third-party payroll service provider for handling all the payroll related administrative tasks. This reduces the time and requirement of permanent internal staff. This can not only downsize the staff and is a cost-effective option. |
| Tax Categories and Key Details |
Explanation |
| Income tax rates |
Income tax is imposed based on the taxable income of the citizens. The rates for Tajiki nationals vary from 0% to 13%, depending on their income slab.
For foreign employees, the employment income is taxable at a flat rate of 25%.
The corporate income tax is between 13% to 23%, based on the enterprise producing goods.
|
| Tax returns |
Yes, tax returns must be filed. |
| Financial year-end date |
The financial year-end date is March 31. |
| Tax documents |
The following are the requirements under the legal and tax obligations:
- The minimum paid up capital for a foreign owned company for investment is $105 and it must be paid within the first 12 months of incorporation of the company.
- Submission of annual audited financial statements by 31st March annually.
- Appointment of Tajikistan resident as company secretary for ensuring compliance with corporation act (Not mandatory)
- Information of all shareholders and direction must be translated officially into Tajik Language. The document must be attested by the embassy of the country of origin.
|
| Corporate tax |
The corporate tax rate for Tajikistan is 15%.
For businesses operating in transportation, telecommunication, service, and banking, the flat rate is 25%.
For non-resident business entities, an additional 8% of tax is levied.
|
| Withholding tax (for foreign employees) |
The withholding tax for non-residents of Tajikistan is as follows:
Insurance and reinsurance premium: 6%
International transport and telecommunication: 5% to 6%
International transport and telecommunication: 5% to 6%
Royalties, rent, and management fee: 15%
|
| Payroll tax |
There are no Tajikistani employer payroll taxes |
| Sales tax |
The sales tax rate in Tajikistan is 18% as of 2021. |
| Employer social security and statutory contributions |
Employers are required to pay a social security tax of 25%. The permanent residents of Tajikistan are required to pay 25% toward the Tajiki social security fund. |
| Employee social security and statutory contributions |
Employees are required to pay a social security tax of 1%. However, this is not applicable for foreign employees or non-residents. |
| Public pension |
The residents of Tajikistan are eligible for the public pension scheme. |
| Medical insurance |
Universal healthcare is currently not in place in Tajikistan. However, medical insurance by employers can be claimed at private hospitals if specified in the employment contract. |
Hire a local payroll specialist such as Skuad that can make payroll management and taxation simpler for you. Our term of experts will also ensure that you comply with all the payroll and taxation laws in Tajikistan. Talk to us to learn more.
Incorporation: How to Set Up a Subsidiary in Tajikistan
Incorporating a hold company in Tajikistan or a subsidiary requires understanding all the rules and regulations implemented by the government of Tajikistan. Skuad can simplify the process through step-by-step assistance by becoming a legal partner for a company set up in Tajikistan as your EOR. With in-depth knowledge of laws, location, and local partners, setting up a business in Tajikistan can be easy and convenient.
The process of subsidiary establishment in Tajikistan requires the following steps and documents.
- Completion of the application form required for state registration for the legal entity or subsidiary
- Detailed information on the founder, business activities, and resolution of founded on legal entity establishment
- Copy of a passport for the company CEO
- Payment of the registration fee and documented fee receipt
- Certificate for state registration and Tax Identification Number (TIN)
- An additional application for the statistic code along with the Social Protection and Pension Number (PIN)
The subsidiary setup opens new avenues of business opportunities in Tajikistan. For the first 12 months of incorporation, a minimum paid-up capital of USD 105 must be deposited.
Skuad’s EOR solution can even get all the documents notarized by the authorized source. To avail yourself of our services, get in touch with Skuad experts!
Professional Employer Organization (PEO)
Professional employer organizations (PEOs) in Tajikistan offer an HR outsourcing platform for small- to mid-sized businesses. They provide the effective management of payroll, risks, insurance, and benefits.
On the surface, both EOR and PEO services look the same. However,
- PEO services are involved only in HR tasks such as recruitment, onboarding, payroll, termination, and benefits. On the other hand, EOR services take full administration and legal responsibility of the employee and become the legal employer for your subsidiary in the country of your choice.
- A PEO cannot operate if your company’s entities do not already exist in the country. An EOR service can operate without a preexisting entity set up.
Companies can go for any of the two according to their preferences. Skuad provides both PEO and EOR solutions for Tajikistan. Hire Skuad’s expert services to take care of all the compliance and HR-related tasks, from onboarding to training. Talk to our team to learn more.
Conclusion: What Gives Skuad’s Tajikistan Services an Edge?
Establishing a branch office in Tajikistan can be time-consuming and expensive. Skuad offers comprehensive EOR services in Tajikistan to make the hiring process smooth and takes complete administration and legal responsibility of the employee. Partner with Skuad for hiring in Tajikistan or expanding business in the country easily and quickly.
Our Tajikistan EOR solution will help minimize the complexity and cost of doing business there. We can take care of all HR tasks for you including recruitment, hiring, onboarding, payroll, taxation, probation, termination, visa, work permits, without organizations requiring to set up a subsidiary. By saving you time and resources, you will be able to direct your focus on the business side of expansion.
Partner with Skaud experts today to expedite your expansion endeavors in Tajikistan. Book a demo with us to know more.
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